Lego Market research Assignment PDF

Marketing Portfolio

Marketing Portfolio 1
Week 1: Market research – LEGO
Market research is imperative for the success of any business. Effective market research allows
businesses to analyse and understand consumer needs and mould their product offerings based
on the same. This results in long term sustainability of the business. Organizations conduct
market research using various surveys, interviews and data collections tools. Market research
helps brands in understanding changing trends and assists them in catering to their target
audience in a better manner.
Lego is a leading toy manufacturing brand. As a business policy, they store day of all their
customers including their age, gender and geographical location. After thorough analysis of the
data given by customers on purchase, Lego realized that 10% of its customers were girls. Until
now, Lego was only targeting boys with its marketing strategy. After identifying this trend, Lego
even conducted extensive research to understand the playing habits of girls. This research helped
them in enhancing their target market by inducing strategies that further attracted young girls to
buy Lego products.
Lego is dominating the toy industry as the brand is worth $7.57 billion (CNBC, 2018). Lego has
been using extensive market research to introduce new products and create a sustainable brand
positioning in the market. Lego has an emotional appeal and all its customers relate to the brand
with their most important childhood memories. LEGO’s Chief marketing officer mentioned that
the brand does not do marketing but works upon creating a product portfolio, product experience,
communication content and an overall social experience. It is the appropriate understanding of
consumer needs and bang on marketing strategies that has led LEGO to become the greatest toy
brand so far.
Week 2: Market competition
Competition among different brands exist in every possible industry. In fact, to an extent, the
growth of the industry largely depends on the competition existing within the industry. In the
face of increasing competition, organizations tend to work upon differentiating their products or
services from other players in the industry.

Marketing Portfolio 2
Mercedes and BMW are highly renowned automobile companies that have been playing a
significant role in the growth of the automobile industry. In order to differentiate itself from
competition, Mercedes continues to focus on the quality of its car, premium pricing strategy and
unique promotion strategies. Promotion strategies also play a significant role in setting an
optimistic position in the minds of consumer and hence gaining a competitive advantage.
Recently, BMW completed 100 years of existence. In a rather witty advertisement, Mercedes
congratulated BMW for completing 100 years but mentioned that the former has been in
existence since 30 years before the establishment of BMW (Hindustan Times, 2016).
The competition between the two brands influences their marketing strategies, their introduction
of new products as well as their promotion messages to customers. Both the brands target the
same customers and hence it is imperative for them to work towards gaining a higher market
share than the other. Both the brands consistently strive to position themselves in an impactful
manner. While BMW has described itself as ‘The Ultimate Driving Machine’, Mercedes has
found itself synonymous with comfort driving of the highest order (US News, 2017). What feeds
this competition the most is the high cost of switching brands for buyers. When a customer buys
a luxury car, the aim is to use that car for long and hence the customer does a thorough analysis
of various aesthetics of the product.
Source 1: Pinterest

Marketing Portfolio 3
Week 3: PESTLE Analysis
PESTLE analysis is conducted by brands in order to understand the political, economic, social,
technological, legal and environmental aspects of a particular location or industry. This strategic
management tool is a renowned strategy that has been used by leading businesses to understand
the industry within which they operate. PESTLE analysis also helps organizations in strategically
analysing the new geographic market or industry while introducing a new product. PESTLE
analysis has often been used to understand if the business can be successfully expanded to a new
location.
Uber taxi organization is a perfect example of disruptive innovation. Since inception, Uber has
expanded itself to over 80 countries across the globe (Uber, 2018). There are various factors that
Uber needs to consider while moving to a different country. This is where PESTLE comes into
the picture. While expanding to different countries, Uber performs a thorough PESTLE analysis
of that new country in order to comprehend the success of the brand. This helps Uber in defining
its pricing and promotion strategies for that particular country. Political stability and economic
growth of a developing economy creates a good opportunity for Uber to expand its base. Because
of political and legal concerns locally, Uber has even been banned in certain countries
(Independent, 2017). Similarly, social factors helps Uber in understanding lifestyles of customers
in the targeted country and also helps the brand in analysing the most appropriate promotion
strategy. Therefore, it can be said that in order to understand the local aesthetics of any country,
PESTLE plays a crucial role. It helps brands in understanding opportunities and creating a
roadmap ahead.

Marketing Portfolio 4
Source 2: Daily MAil
Week 4: SWOT Analysis
SWOT analysis is short for analysing the strengths and weaknesses of a brand within its internal
environment. The tool also helps businesses in identifying the opportunities that are presented to
the brand as well as the threats which are posed to the brand.
Starbucks is a coffee chain that has been leading in various countries as one of the most effective
coffee brands in the world. Starbucks was founded in 1971. Currently the brand has presence in
over 75 countries across the globe. In order to understand its strengths and weaknesses,
Starbucks conducts thorough SWOT analysis. The biggest strength of Starbucks beyond the
impeccable coffee and a large product line is the experience that it promises to deliver to its
consumers (Martin Roll, 2017). Starbucks aims to create a third place for its customers between
their homes and workplaces. The brand simply does not sell coffee but sells an experience.
Starbucks has identified its strength and ensured that every outlet is designed in a manner that

Marketing Portfolio 5
appears comfortable and relaxing. Most chairs of the outlets are replaced by couches, different
parts of the outlet are equipped with charging points and all the outlets offer free Wi-Fi. It is a
highly customer centric organization and this is the organization’s biggest strengths.
Source 3: Slideshare
While analysing its opportunities and threats, the brand has successfully identified numerous
geographical locations in order to open its outlets. Starbucks has also carefully curated its
expansion strategy while moving to different countries. At certain places, the brand opened
franchisees while at certain locations which were entirely new in terms of culture and customer
needs, the brand entered into joint ventures with leading organizations of the host country (China
Briefing, 2017). This has also helped the brand gain acceptance in every country it has expanded
to.

Marketing Portfolio 6
Week 5: Segmentation, Targeting and positioning
Segmentation is ideally the process of dividing a particular market into several segments on the
basis of certain attributes of customers. These attributes include customer’s caste, religion, age,
income group, lifestyle, attitude or even geographic location. The purpose of dividing the market
into such segments is for brands to identify the set of customers which the brand will target
through its marketing strategies. This targeted set of customers whose needs the business will
aim to fulfil constitutes the target market of the firm. Lastly, market positioning of a particular
brand throws light on the image that the brand holds in the minds of its consumers.
Segmentation, Targeting and positioning helps businesses in identifying the need gap that they
must fill with their offerings.
Amazon Inc. is the leading ecommerce organization that has been dominating the online market.
Amazon targets a large set of customers owing to its extensive product line which includes
clothes, shoes, bags, grocery products, furniture, consumer electronics, house hold goods and
even automobiles. Amazon has presence across the globe in over 90 countries. In every country,
the brand tries to go ‘glocal’ by identifying and catering to the local needs of its citizens.
Amazon has a large target market in India as well. However, in order to successfully position
itself, Amazon aims to ensure that it understands consumer needs and acts in accordance with the
demands of the local citizens of India. This strategy includes tying up with India sellers and
offering products which respect the country’s cultural and religious sentiments. This has led to a
high acceptance for the brand. Amazon has carefully targeted its Indian customers in order to
gain trust and enhance customer base. Amazon has been in talks with Alphabet to together buy a
majority share in India’s leading Ecommerce brand ‘Flipkart’ (Flipkart, 2018).
Week 6: New Product or service launch
Successful product launch
One of the highest grossing augmented reality game that garnered immense attention from
different parts of the world is Pokemon Go. The game gained attention of customers. The idea of
the game was unique. Within three months of the launch, the game earned profits worth $600
million (Quartz Media, 2016). Pokemon Go was well accepted across different age groups. The

Marketing Portfolio 7
fad was so real that leading celebrities were seen posting on their Facebook about the game.
People were hooked and the craze lasted longer than most games experience today. It was one of
the most successful products launched in 2016. There are various internal and external factors
involved in the success of the product including the brand’s extensive technology, lack of
competition during that time and the genius idea behind the game coupled with creatively
curated promotional strategies.
Source 4: Sensor Tower
Failed product launch
One of the biggest failure in the recent news has been the launch of Samsung Note 7. Before the
launch, the product was highly anticipated in the. However, within a single month of the launch,
things went downhill for the brand. Over 30 cases of Samsung Note 7 exploding were confirmed
(First Post, 2016). The mobiles just exploded for no particular fault of the user. This was one of
the biggest product recall in the history of consumer electronics (First Post, 2016). The
anticipated loss by the brand was $3 billion.

Marketing Portfolio 8
Internal flaws in the business led failure of the product. However, certain steps taken by the
brand saved the dying grace. Samsung sincerely apologized on all public platforms to all its
customers and provided them excellent service followed by the fiasco. A recent Reuters’ poll
confirmed that over 91% of the customers are likely to continue using Samsung even after the
fiasco (DazeInfo, 2018). The important take away from the incident is that despite launching a
failed product, there are certain steps that a brand can take in order to ensure customer loyalty
and service.

Marketing Portfolio 9
References
Business Insider, 2018, ‘Amazon makes an offer on Flipkart’,
https://www.businessinsider.in/amazon-makes-offer-on-flipkart-2018-5?r=US&IR=T,
retrieved on 6 May, 2018.
China Briefing, 2017 ‘Joint ventures in China’,
http://www.china-briefing.com/news/2017/08/22/joint-ventures-in-china-learning-from-
starbucks-and-mcdonalds.html, retrieved on 6 May, 2018.
CNBC, 2018, ‘Lego marketing strategy’, Available at https://www.cnbc.com/2018/04/27/lego-
marketing-strategy-made-it-world-favorite-toy-brand.html, retrieved on 6 May, 2018.
Daze Info, 2018. ‘Samsung customers remain loyal despite S7 fiasco’. Available at
https://www.firstpost.com/tech/news-analysis/the-samsung-galaxy-note-7-fiasco-a-blow-
by-blow-account-3695113.html, retrieved on 6 May, 2018.
First Post, 2016, ‘Samsung recalls 50,000 Galaxy Note 7 smartphones’, Available at
https://www.firstpost.com/tech/news-analysis/samsung-recalls-over-50000-galaxy-note-
7-smartphones-in-australia-3688041.html, retrieved on 6 May, 2018.
First Post, 2016, ‘The Samsung Galaxy Note 7 Fiasco’, Available at
https://www.firstpost.com/tech/news-analysis/the-samsung-galaxy-note-7-fiasco-a-blow-
by-blow-account-3695113.html, retrieved on 6 May, 2018.
Forbes, 2018, ‘7 ways Amazon is winning by acting Glocally in India’, Available at
https://www.forbes.com/sites/mohanbirsawhney/2018/04/30/7-ways-that-amazon-is-
winning-by-acting-glocally-in-india/, retrieved on 6 May, 2018.
Hindustan Times, 2016, ‘Thanks for the competition’, Available at
https://www.hindustantimes.com/autos/mercedes-gift-to-bmw-on-100th-birthday-offers-
free-museum-tour-to-discover-history-of-automobile/story-
XlH5OWbgsa249Ba3Qxg3kO.html, Retrieved on 6 May, 2018.

Marketing Portfolio 10
Independent, 2017, ‘Uber banned in which countries’, Available at
https://www.independent.co.uk/travel/news-and-advice/uber-ban-countries-where-world-
taxi-app-europe-taxi-us-states-china-asia-legal-a7707436.html, retrieved on 6 May, 2018.
Martin Roll, 2017 ‘The secret to Starbucks brand success’,
https://martinroll.com/resources/articles/strategy/secret-starbucks-brand-success/,
retrieved on 6 May, 2018.
Quartz Media, 2016, ‘WE finally know how much Nintendo made from Pokemon go’, Available
at https://qz.com/819677/nintendo-pokemon-go-profits-we-finally-know-how-much-
nintendo-made-from-pokemon-go/, retrieved on 6 May, 2018.
Uber, 2018, ‘Uber countries’, Available at <https://www.uber.com/en-IN/country-list/>,
Retrieved on 6 May, 2018.
US News, 2017, ‘Battle of the brand, Available at https://cars.usnews.com/cars-trucks/bmw-vs-
mercedes, Retrieved on 6 May, 2018.